Rosehill Resources Inc. Halts 2020 Capital Activity, Withdraws Previous Guidance and Focuses on Cash Flow and Liquidity
20 3월 2020 - 5:15AM
Rosehill Resources Inc. (“Rosehill” or the “Company”) (NASDAQ:
ROSE, ROSEW, ROSEU) today provided an operational and financial
update and withdrew its previously issued 2020 guidance in light of
deteriorating global markets and commodity prices.
Capital Activity and Guidance
The Company has halted all drilling and
completion activity for 2020. The Company now has five
drilled uncompleted wells all located in Loving County after
drilling eight wells and completing eight wells to date in
2020. Through February, the Company’s average net production
for 2020 was approximately 20,900 barrels of oil equivalent per
day.
Rosehill’s 2020 guidance issued on December 16,
2019 should no longer be relied upon.
Liquidity and Commodity Hedges
The Company fully drew the amount available
under its revolving credit facility as a precautionary measure in
order to increase its cash position and preserve financial
flexibility in light of current uncertainty in the global markets
and commodity prices. After this draw, the Company’s total
debt under its credit facility increased to $340 million with total
cash on hand of $73 million. The Company remains fully
compliant with all of its financial covenants.
The Company’s commodity derivative portfolio
continues to be a significant asset with a projected settlement
value of approximately $159 million and mark-to-market value of
approximately $143 million, both as of March 18,
2020.
Management Comments
David French, Rosehill’s President and Chief
Executive Officer, commented, “In response to recent global market
conditions and their effect on commodity prices, we have taken
actions to position our business for maximum resiliency.
These actions include halting all drilling and completion
activities, along with increasing available liquidity through
recent drawing of available amounts under our revolving credit
facility.”
About Rosehill Resources
Inc.
Rosehill Resources Inc. is an independent oil
and gas exploration company with assets positioned in the Delaware
Basin portion of the Permian Basin. The Company’s strategy includes
the focused development of its multi-bench assets in the Northern
Delaware Basin and the Southern Delaware Basin, as well as adding
economic drilling inventory to support future growth.
Forward-Looking Statements
This communication includes certain statements
that may constitute “forward-looking statements” for purposes of
the federal securities laws. All statements, other than
statements of historical fact included in this communication,
regarding Rosehill’s opportunities in the Delaware Basin, strategy,
future operations, hedge value, liquidity, expected drilling and
completions activity, financial position, including compliance with
financial covenants, estimated results of operations, future
earnings, future capital spending plans, expected gains from
settling derivatives, prospects, plans and objectives of management
are forward-looking statements. When used in this
communication, the words “could,” “believe,” “anticipate,”
“intend,” “estimate,” “expect,” “project,” “guidance,” “forecast”
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words.
You should not place undue reliance on these
forward-looking statements. Although the Company believes
that the plans, intentions and expectations reflected in or
suggested by the forward-looking statements in this communication
are reasonable, no assurance can be given that these plans,
intentions or expectations will be achieved or occur, and actual
results could differ materially and adversely from those
anticipated or implied by the forward-looking statements.
Some factors that could cause actual results to differ include, but
are not limited to, the Company’s ability to realize the
anticipated benefits of its drilling and completion activities,
commodity price volatility, inflation, lack of availability of
drilling and completion equipment and services, environmental
risks, drilling and other operating risks, regulatory changes, the
uncertainty inherent in estimating oil and natural gas reserves and
in projecting future rates of production, cash flow and access to
capital, the timing of development expenditures and the other
risks and uncertainties discussed under the section titled “Risk
Factors” in the Company’s Form 10-K, and in other public filings
with the Securities and Exchange Commission (the “SEC”) by the
Company. The Company’s SEC filings are available publicly on
the SEC’s website at www.sec.gov. These forward-looking
statements are based on management’s current expectations and
assumptions about future events and are based on currently
available information as to the outcome and timing of future
events. All forward-looking statements speak only as of the date of
this communication. Except as otherwise required by
applicable law, the Company disclaims any duty to update any
forward-looking statements, all of which are expressly qualified by
the statements in this section, to reflect events or circumstances
after the date of this communication.
Contact Information: |
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|
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David L. French |
Craig Owen |
President and Chief Executive Officer |
Senior Vice President and Chief Financial Officer |
281-675-3400 |
281-675-3400 |
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John Crain |
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Director of Investor Relations281-675-3493 |
Rose Hill Acquisition (NASDAQ:ROSE)
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